China Begins Producing Hybrid Cars

Chang'an Automotive Group produced its first hybrid vehicle, and is hoping to start offering hybrids on the market soon. The hybrid vehicle is called the 'HEV,' is the first hybrid vehicle set for mass production in China by a Chinese automaker. (Source: China's Changan Auto first hybrid model rolls off line - Xinhua - Forbes.com

Chang'an Auto President Xu Liuping is quoted as saying the pricetag for the HEV will be 'far lower' than similar models produced by foreign auto makers.

Toyota produces the Prius in China, but imports some of the more critical components in. Other hybrid cars in China are imported.

Chang'an is partnered with Ford in China. They hope to increase hybrid car sales to the point where hybrids will make up 10% of their total sales by 2010.